Annual Savings Run for Life of Plan or Till Retirement?

A retirement planning tool is only as good as its assumptions and inputs. Share your thoughts or ask questions about the internals of the simulation, built in planner assumptions, or planner inputs.
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rchow
Posts: 9
Joined: Thu Jun 11, 2015 7:16 pm

Annual Savings Run for Life of Plan or Till Retirement?

Post by rchow » Wed Nov 22, 2017 9:06 pm

Question on the various annual savings inputs (taxable, tax deferred, and tax free): do these inputs run for the life of the plan or just till retirement?

Thank you.

rchow
Posts: 9
Joined: Thu Jun 11, 2015 7:16 pm

Re: Annual Savings Run for Life of Plan or Till Retirement?

Post by rchow » Wed Nov 22, 2017 9:12 pm

Also for the tax deferred annual savings input - does FRP automatically deduct that amount from the taxable income? i.e. - as in what happens in real life against 401k contributions that can be deducted against W2 income?

Thank you.

jimr
Posts: 518
Joined: Thu Feb 28, 2008 6:48 pm

Re: Annual Savings Run for Life of Plan or Till Retirement?

Post by jimr » Wed Nov 22, 2017 9:13 pm

The annual savings cashflows on the main input window only continue up to retirement.

You can check out the year-by-year cash flows by clicking on the 'Detailed View' tab. Annual savings show up in the 'New Investments' column. If you click the 'show more details' radio button on the top right of the screen, you can see the investment by portfolio type.

jimr
Posts: 518
Joined: Thu Feb 28, 2008 6:48 pm

Re: Annual Savings Run for Life of Plan or Till Retirement?

Post by jimr » Wed Nov 22, 2017 9:15 pm

rchow wrote:Also for the tax deferred annual savings input - does FRP automatically deduct that amount from the taxable income? i.e. - as in what happens in real life against 401k contributions that can be deducted against W2 income?
It doesn't. Generally, FRP doesn't track income and expenses before retirement, so it just assumes you earn enough after tax to fund the Annual Savings amounts that you specify.

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